| Consumer Energy Tax Incentives What the | | | | electric systems can receive a 30% tax credit |
| Economic Stabilization Bill Means to You The | | | | for systems placed in service from January 1, |
| recently passed Emergency Economic Stabilization | | | | 2006 through December 31, 2016; the previous |
| Act of 2008 (P.L. 110-343) included, extended and | | | | tax credit cap of $2,000 no longer applies. |
| or amended many consumer tax incentives | | | | In addition, consumers who install small wind |
| originally introduced in the Energy Policy Act of | | | | systems can receive a tax credit up to $4,000. |
| 2005 (EPACT). | | | | Geothermal heat pumps also qualify for tax |
| The bill also included tax incentives for businesses, | | | | credits up to $2,000. Automobile Tax Credits |
| utilities, and government. For a complete | | | | Individuals and businesses who buy or lease a |
| summary of the tax incentives included in the bill, | | | | new hybrid gas-electric car or truck are eligible for |
| read the summary of Energy Tax Incentives in | | | | an income tax credit for vehicles “placed in |
| The Emergency Economic Stabilization Act of | | | | service” after January 1, 2006 and purchased |
| 2008. About Tax Credits A tax credit is generally | | | | on or before December 31, 2010. The amount of |
| more valuable than an equivalent tax deduction | | | | the credit depends on the fuel economy, the |
| because a tax credit reduces tax dollar-for-dollar, | | | | weight of the vehicle, and whether the tax credit |
| while a deduction only removes a percentage of | | | | has been or is being phased out. Hybrid vehicles |
| the tax that is owed. Consumers can itemize | | | | that use less gasoline than the average vehicle of |
| purchases on their federal income tax form, which | | | | similar weight and that meet an emissions |
| will lower the total amount of tax they owe the | | | | standard qualify for the credit. |
| government. | | | | There is a similar credit for alternative-fuel, diesel, |
| Fuel-efficient vehicles and energy-efficient | | | | and fuel-cell vehicles. This tax credit will be phased |
| appliances and products provide many benefits | | | | out for each manufacturer once that company |
| such as better gas mileage – meaning lower | | | | has sold 60,000 eligible vehicles. At that point, the |
| gasoline costs, fewer emissions, lower energy bills, | | | | tax credit for each company’s vehicles will be |
| increased indoor comfort, and reduced air pollution. | | | | gradually reduced over the course of another |
| In addition to federal tax incentives, some | | | | year. Read the IRS's Summary of the Credit for |
| consumers will also be eligible for utility or state | | | | Qualified Hybrid Vehicles for information on the |
| rebates, as well as state tax incentives for | | | | status of specific vehicle eligibility. |
| energy-efficient homes, vehicles and equipment. | | | | If individuals and businesses buy more than one |
| Each state’s energy office web site may | | | | vehicle, they are eligible to receive a tax credit for |
| have more information on specific state tax | | | | each. If a tax-exempt organization buys such a |
| information. Below is a summary of many of the | | | | vehicle, the retailer is also eligible to receive |
| tax credits available to consumers. Please see the | | | | another credit. |
| ENERGY STAR®'s Federal Tax Credits for | | | | Companies that buy heavy-duty hybrid trucks are |
| Energy Efficiency for complete details. | | | | also eligible for a larger tax credit. Consumers who |
| Home Energy Efficiency Improvement Tax | | | | purchase plug-in electric drive vehicles can also |
| Credits Consumers who purchase and install | | | | receive a tax credit. The credit for passenger |
| specific products, such as energy-efficient | | | | vehicles and light trucks ranges from $2,500 to |
| windows, insulation, doors, roofs, and heating and | | | | $7,500 based on the tax code formula. |
| cooling equipment in the home can receive a tax | | | | Taxpayers may claim the full amount of the |
| credit of up to $500 for improvements "placed in | | | | allowable credit up to the end of the first calendar |
| service" starting January 1, 2009 through | | | | quarter after the quarter in which the total |
| December 31, 2009. | | | | number of qualified plug-in electric drive vehicles |
| The ENERGY STAR® website has a complete | | | | sold in the U.S. exceeds 250,000. * Source: |
| summary of energy efficiency tax credits | | | | ENERGYSTAR.gov ** The IRS will determine final |
| available to consumers. Residential Renewable | | | | tax credit amounts. |
| Energy Tax Credits Consumers who install solar | | | | |